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Why Ottawa's new rules for electricity mean little for B.C.

Provinces that still burn natural gas for power push back against new net-zero plan
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"They will not be implemented in our province – period' -- Alberta Premier Danielle Smith.

The Trudeau government’s new draft Clean Electricity Regulations for a net-zero grid by 2035 are generating major push-back in Alberta and Saskatchewan, but not a peep out of B.C.

That’s because, unlike Alberta and Saskatchewan, B.C.’s grid is already about 98 per cent renewable. B.C. no longer burns natural gas to generate power, except in very small amounts in co-generation plants. The new federal regulations will therefore have little impact in B.C., but could have major impacts in Alberta and Saskatchewan.

“Because British Columbia relies almost entirely on non-emitting sources of energy, or very low emitting sources of energy, the impact on British Columbia itself is going to be minimal,” said Marla Orenstein, director of natural resources for the Canada West Foundation.

Even in Alberta, which is moving to phase out coal power entirely by the end of this year, but which will rely heavily on natural gas thermal power, there is more flexibility in the new regulations than was anticipated, Orenstein said, although the premier of Alberta doesn’t appear to see it that way.

In a framework that came out last year, the regulations seemed to require provinces like Alberta and Saskatchewan to not only phase out coal power by 2030, but also stop generating power with natural gas by 2035 today, have some grandfathering in them that gives natural gas power a couple of decades of runway, according to Orenstein.

The new draft regulations, released today, have some grandfathering in them that gives natural gas power a couple of decades of runway, according to Orenstein.

Natural gas power plants built by or before 2025 would still be able to operate for another 20 years – so until 2045 – Orenstein said.

“There’s no disagreement, fundamentally, between the provincial government of Alberta and Saskatchewan and the federal government on the end goal,” Orenstein said. “For both of them, they have pledged to reach a net zero electricity grid. The question was always on the timing.

“With the regulations that were issued today, there’s a bit more flexibility with meeting in the middle. In the framework that came out last year, the idea was going to be 2035 – that’s it. Everybody has to get there by then.”

The draft regulations that came out today give a 20-year grace period, Orenstein said.

“That allows the provinces not to close things down quite so prematurely,” she explained.

Alberta Premier Danielle Smith isn’t happy with the draft regulations, however, and said Alberta may end up simply ignoring Ottawa and its net-zero ambitions.

“The draft federal 2035 net-zero power grid regulations are unconstitutional, irresponsible and do not align with Alberta’s emissions reduction and energy development plan that works towards a carbon-neutral power grid by 2050,” Smith said in a news release.

“If implemented in Alberta, these regulations would endanger the reliability of Alberta’s power grid and cause massive increases in Albertans’ power bills.

“Alberta’s government will protect Albertans from these unconstitutional federal net-zero regulations. They will not be implemented in our province – period.”

The one positive thing about the regulations, Smith said, was the fact they were not final ones, but draft.

She said Alberta is starting a working group to work with the federal government to seek alignment on policies for decarbonizing Alberta’s economy.

“If this alignment is not achieved, Alberta will chart its own path to ensuring we have additional reliable and affordable electricity brought onto our power grid that is available 24 hours a day, 365 days a year,” Smith warned.

Saskatchewan Premier Scott Moe likewise said his province will not obey the federal regulations on electricity.

Both Alberta and Saskatchewan have pledged to phase out coal power by 2030, but to do that they plan to use a mix of renewables backed by firm natural gas power. Both provinces are pushing back on the idea that natural gas must also either be phased out.

“Trudeau’s net-zero targets are simply not achievable in Saskatchewan, and we will not ask our residents to pay the extraordinary price for the federal government’s divisive policies, nor will we risk the integrity of our provincial power grid to defy the laws of thermodynamics,” Moe said in a statement.

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